Mr. Matthew Kichodhan, President of Oishi Group PCL, said, “Despite the past year’s disruptions to our production capacity, Oishi managed to achieve strong operating results. Total revenues for 2012 rose by 22% to 11,634 million baht, with an 18% increase in our beverage business, while the growth of our food business was 29%. Net profit for 2012 slightly decreased to 654 million baht due mainly to the effect of Thailand’s 2011 flood, which led to a loss of sales opportunities of 650 million baht, as well as doubling handling the capacity of our central kitchen for the food business at a cost of 60 million baht. The company also invested 100 million baht in brand building for Onori, a newly-launched snack.”
In 2013, Oishi expects to grow its sales by 32% to 15.3 billion baht. This growth will be driven by several exciting marketing activations to further expand markets both domestically and internationally.
For its beverage business, Oishi is aiming for 33% sales growth. As the market leader, in addition to international market expansion, the company aims to grow the category through a cradle-to-grave strategy with products that cover every target group and occasion. The company continues to drive the industry with the first carbonated Green Tea, Oishi Chakulza, which offers consumers a healthier alternative in the CSD market. New products such as 380ml Oishi Green Tea at a price of 15 baht, 350ml Oishi Fruito at a price of 12 baht, and the 400ml Oishi returnable bottle at a price of 12 baht will also be key contributors to generate exceptional growth in 2013.
To further support its growth, the company will open a new 1,100 million-baht production plant in Wang Muang, Saraburi province, on 15 March 2013. The new facility will increase output by up to 15 million bottles per month. Oishi has also set an advertising and promotional budget of 1.4 billion baht, which represents 9.6% of expected 2013 sales revenue, to support all marketing activities throughout the year.
An attractive promotion called “Oishi Code, Win Every Hour” which used consumer insights to develop a fantastic summer campaign, will continue to play a key role in boosting demand due to the ease of participation. Consumers can participate by simply sending in the code via mobile phone and easily win a prize of gold every hour, every day and every month, with 2,466 prizes worth a total value of 90 million baht.
Oishi is targeting a 30% increase in sales for its food business this year. The company will use a strategy of increased market coverage, including the expansion of at least 50 of its flagship outlets which are Shabushi, Nikuya and Kakashi, new quick-service restaurants that offer more consumers the chance to dine on great-quality Japanese food at affordable prices. Oishi will also focus on international market expansion, which expects to see significant movement in the 4th quarter of 2013, and new product offerings, in particular snacks and chilled/frozen food.
In line with its aggressive expansion, Oishi is investing 545 million baht to build a new central kitchen for its food business, which will open in Banbueng, Chonburi province, in October 2013.
Oishi currently has a total of 154 outlets nationwide. The company’s 5-year plan calls for 275 outlets throughout Thailand by 2016.
“Even though the food and beverage industry is intensely competitive, with many competitors and the ease of product substitution, we are confident that the company will achieve impressive growth, and 2013 will definitely be another remarkable year for Oishi Group,” concluded Mr. Kichodhan.
For more information, please contact:
Oishi Group Plc. Aziam Burson-Marsteller
Dutduan Jarukakul Suratchada Sawangnate
Tel 0-2785-8852 Mobile 081-855-2524 Tel 02 252 9871